One year after Russia caused Western sanctions due to the invasion of Ukraine, the yuan has replaced the US dollar to become Russia's largest foreign currency.
According to Bloomberg, data compiled by the daily transaction report of the Moscow Stock Exchange show that the RMB transaction volume in February exceeded the US dollar for the first time, and the difference between the two became more obvious in March.It is reported that before Russia's invasion of Ukraine, the transaction volume of RMB in the Russian market can be ignored.
This transformation occurred after this year's additional sanctions affected a few Russian banks. These banks could have previously used currencies for the US dollar and other Russia to be listed as "unfriendly" countries for cross -border transfer.The banks, which are increasingly stressed in Europe and the United States, include Raiffeisen Bank International Ag. Its Russian branches are still one of the main channels for Russia's international payment.
Russia's invasion of Ukraine last February caused its relationship with Western countries. Since then, Moscow has deepened its connection with Beijing.Last month, Chinese President Xi Jinping visited Russia for the first time after re -election, promising to expand cooperation with the Kremlin Palace in the field of trade, investment, supply chain, large projects, energy and high -tech fields.
The comprehensive sanctions against the Russian financial system for the West forced the Cremlin and Russian companies to transfer trade settlement currency from the US dollar and euro to the currency of the country where the country was imposed on the country.
It is reported that the Russian Ministry of Finance has reorganized the asset allocation of the National Fortune Fund earlier this year and will not invest in assets denominated in US dollars, and the upper limit of the RMB in the fund has reached 60%.The Russian central bank often calls on enterprises and citizens to replace their assets with currencies in rubles or "friendly" countries to prevent future transactions from being blocked or frozen.
Nevertheless, according to the foreign exchange data compiled by Bloomberg, the US dollar is still the most popular currency in the Russian market, and the transaction volume on all trading days is slightly lower than the RMB.
ITI Capital's strategist Lutzco (translated, Iskander Lutsko) said: "There are fewer and fewer US dollars in the market now, because the decline in oil prices and exports has led to a decrease in fiscal revenue of Russia."
